Oil is rebounding after touching the bearish correction target 12/4/2023

US crude oil futures prices achieved the first corrective decline target published during the previous technical report, located at 79.30, to rebound quickly to the upside. The current movements are hovering around $81.30 per barrel.

Technically, the current movements of oil are witnessing stability above the resistance of 80.80, in addition to the intraday stability above 81.10. When looking closely at the 4-hour chart, we find that the simple moving averages returned to hold the price from below, and this comes in conjunction with the clear positive signs on the 14-day momentum indicator.

We tend to be positive during the current trading session, provided that the breach of the pivotal resistance 81.75 is confirmed, targeting 82.10 as a first target, taking into consideration that the breach of 82.10 is a catalyst that increases and accelerates the strength of the expected bullish trend, opening the door to visit 82.90, and then 83.20 as a next stop.

We remind you that the decline below 80.00, and more importantly, 79.50, can thwart the bullish expectations and lead oil prices to visit 78.65.

Note: The level of risk is high and may not be commensurate with the expected return.

Note: Today we are waiting for high-impact economic data issued by the US economy: the results of the Federal Reserve Committee meeting, “consumer price index” and from the Canadian economy, we await ” the interest of the Bank of Canada and the press conference of the Bank of Canada” in addition to “the speech of the Governor of the Bank of England”. We may witness high volatility at the time of the news release.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 80.00	R1: 82.10
S2: 78.65	R2: 82.90
S3: 77.85	R3: 84.20